Berry Plastics, Dow Chemicals, Fuji Seal International Inc. are the torch bearers in theglobal stretch and shrink films marketThese players, as well as other prominent participants, are increasingly focusing on collaborations with local distributors and expanding operations in emerging countries to consolidate their position in the market, observes Transparency Market research (TMR) in a new study.

Several players are emphasizing on expanding their geographical outreach to enhance their visibility in the market. For instance, Bemis Company Inc. dedicates considerable resources in strengthening its foothold in India, China, and South America. In December 2015, the company acquired Emplal Participações S.A., a manufacturer of plastic packaging in Brazil.

The opportunity in the global stretch and shrink films market had a valuation of US$14.1 bn in 2015 and is poised to exhibit a CAGR of 5.2% between 2016 and 2024, reaching US$21.1 bn by 2024.

Asia Pacific to Remain Dominant through 2024

Based on end use, the food and beverages segment will continue to account for the lion’s share in the market in terms of revenue until 2024. On the other hand, the pharmaceutical segment will post a CAGR higher than any other segment during the review period.

From the geographical standpoint, Asia Pacific will be the frontrunner in terms of value throughout the forecast horizon. The rapid urbanization and increasing investments in the manufacturing sector are contributing to the growth of the market. Apart from these, the flourishing growth of end-use industries and rising disposable income of the populace are likely to keep the demand for stretch and shrink films high in the coming years. Owing to these factors, the region is estimated to exhibit noteworthy CAGR during the same period.

Rising Sales of Packaged Food and Beverages to Augment Demand for Stretch and Shrink Films

In the packaging industry, flexible packaging is rapidly making inroads into the shares of rigid packaging. The former is replacing the latter in several applications, emerging as the most promising segment. Among different types of flexible packaging, stretch and shrink films are highly popular and widely used throughout the supply chain. The increasing popularity of flexible packaging is, therefore, one of the primary growth stimulants of the global stretch and shrink films market.

“The food and beverages industry is a prominent end user of stretch and shrink films, due to the spiraling demand for packaged food,” says TMR’s lead analyst. Therefore, the increasing sales of packaged food and beverages are stoking the growth of the market. The market is also propelled by the rapid expansion of other end-use industries, including retail, pharmaceutical, and transportation and logistics.

Strict Government Regulations to Hamper Growth Prospects

The rising concerns pertaining to the harmful effects of packaging on the environment and health and safety of people are compelling governments worldwide to implement stringent legislations and regulations. “The enforcement of these rules have adversely affected the dynamics of the packaging industry, thereby putting players under severe financial burdens. This is impeding the upward climb of the global stretch and shrink films market,” says a TMR analyst.

The growing popularity of biodegradable alternatives for packaging has a negative impact on players, smaller ones especially. Due to insufficient capital, it is becoming difficult for them to shift from non-biodegradable materials. This is, in turn, hampering the growth of the overall market.